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Deutsche Bank Securities Japan cut its price target on NEC Corp (NIPNY) by nearly 22% to 500 yen ($4.41) from 640 yen ($5.65) while maintaining its "sell" rating. DB doesn't like NEC's high valuation -- its P/E is near 100 -- and believes it will take time for investors to come back to the stock.

DB said there are too many uncertainties as to how competitive NEC can be in its three main divisions -- Computers, Networking, and Semiconductors/Components -- and how fast it will be able to grow revenues and margins.

NEC's ordinary shares (Tokyo: 6701) gained 1.17% to close at 606 yen ($5.35) as the Nikkei 225 Stock Average finally rallied after what hopefully is the end of a massive sell-off that's taken the N225 from the 17,000s to the 14,000s.

NEC's ADRs closed yesterday at $5.33 and have traded between a range of $4.94 and $7.72 over the past 52-weeks.

NEC Corp ADR (NIPNY) 1-year chart:

Source: Deutsche Bank Bearish on NEC, Lowers Target (NIPNY)